Multilevel Marketing is one of the fastest growing yet most misunderstood methods of moving products in use today. It has been termed by many as the Wave-of-the Eighties.
But, it will go far beyond that. By the 90's more than 100 billion dollars woth of products and services has been moved through Multilevel Marketing companies. As we are in the 21st century watch out !
What is MLM ?
This question is quite frequently in response to a button we often wear or we have seen wearing by others.
Let's explain it.
1. Marketing simply means moving a product or service from the manufacturer or provider to the consumer.
2. Multilevel refers to the system of compensation provided to the persons who are causing the product to move or the service to be provided.
"Multi" means more than one.
"Level" means generation.
There are really 5 basic methods of moving products:
1. Retailing.
ex. the drug store, the department store,... You go into a store and buy something.
2. Direct Sales.
ex. Tupperware, Avon, .....
3. Multilevel Marketing.
This should not be confused with retailing and Direct Sales which commonly is.
4. Mail Order.
This can be an MLM but mostly is included in the Direct Sales category.
5. Pyramid Sales.
This type of Sales is to often confused with MLM.
The fact is, Pyramides are illegal. The main reasons they may be illegal is their failure to move a product or to provide a valid service.
If a product doesn't move, how can you even call it "marketing", let alone "Multilevel Marketing". Multilevel it may be, but Marketing they are not!
Now, most objections that people have about getting into Multilevel Marketing are due to not realising the difference between MLM, Pyramid Sales and the Direct Sales methods of marketing.
This is understandeble because most reputable MLM companies belong to the Direct Selling Association.
We have been conditioned to think of MLM as door to door direct sales programs because our first encounter with them was when a distributor knocked on our door to sell us something.
Anyway, there are some features that differentiate MLM from Retail and Direct Sales companies and on very significant difference is that in MLM you are in business for YOURSELF but not BY YOURSELF.
Being in business for yourself means you are buying the products WHOLESALE from the company you are representing. This means also that you can use these products for your own consumption at WHOLESALE PRICES.
Since we are buying products WHOLESALE we can, if we wish, sell these products at RETAIL and make a PROFIT.
The most common misunderstanding about MLM is the notion that you HAVE TO sell retail to be successful.
You may sell if you want to or have to due to your particulare program procedure, but in regard to making the larger sums of income, the real success is in building the organisation.
Let your sales come as the natural result of building the organization.
The word "selling" triggers negative thoughts in the minds of about 95 % of the people.
In MLM you don't need to "sell" the products in the traditional sense of the word.
However, the PRODUCT DOES HAVE TO MOVE or NOBODY GETS PAID.
When you build an organization, you are actually building a network through which to channel your producths or services.
Retailing is the foundation of Network Marketing. Sales in MLM or Network Marketing come from distributors SHARING with their friends, neighbours and relatives. They never have to talk to strangers. Network Marketing or MLM is building an organization in which a lot of distributors all retail a little.
So, you see, its not going door to door every day calling on strangers.
Another point that differentiates MLM from Direct Sales is the SPONSORING of other distributors. This is called RECRUITING.
When you SPONSOR someone, you are making a COMITMENT to TEACH them how to do what you are doing, building a BUSINESS OF THEIR OWN. Sponsoring is what makes a Multilevel Marketing business so different an makes it grow.
As your organization grows, you are building toward becoming an INDEPENDANT SUCCESFULL BUSINESS PERSON. You are your OWN BOSS.
With Direct Selling companies you work for the company. If you decide to quit that company and move to another area, you end up having to start all over again.
In almost all of the MLM Programs you can move to another area of the country and sponsor people without losing the volume generated by the group you left behind.
In MLM Programs you can make a lot of money by building an organization as your primary function.
A Multilevel Marketing Organization is not a pyramid scheme.
The pyramid is built from the top down and only those in at the very beginning can ever be near the top. And the pirce of the products or services get every step higher and higher, leaving the people at the bottom broke.
In the MLM Marketing everybody starts at the bottom and has the opportunity to build a large organisation, even larger than his sponsor's organizationif he wants.
MLM Marketing is the solution to the distribution costs of the most companies because there will be nomore channels between the producer and the consumer. And the most part of the benefit can be paid to the distributors.
Fernando Soave
About The Author
Fernando Soave
CEO, CUTTING EDGE MLM
Subscribe to my Free Newsletter !
mailto:mnet@followup101.com?subject=SUBSCRIBE a>
The idea of using a network-marketing program to generate extra... Read More
Networking Marketing systemModern congested lifestyles makes it very difficult to... Read More
The reasons for failure are quite simple but many have... Read More
Ok...you have a new distributor. What do you do with... Read More
Many people want to get into multi-level marketing without knowing... Read More
If we could all have one wish granted chances are... Read More
Recent discussions with fellow network marketers have centered on whether... Read More
What difference does it make to you if the sales... Read More
There is absolutely no doubt. Network marketing or multi level... Read More
Experienced Internet Marketers and beginners alike have one thing is... Read More
Do you feel strong, healthy, financially secure?Are you too busy... Read More
It seems as if everybody is into networking these days... Read More
Basic IdeaMultilevel marketing (MLM), also known as "Network" marketing, are... Read More
There are certain traits that you look for in a... Read More
Nowadays, network marketing is very popular in our society. Almost... Read More
Let's face it! Most people who join a Network Marketing... Read More
Three conditions now exist which will change the way we... Read More
Network marketing has a fantastic range of business opportunities. First... Read More
Surely by now you've heard of network marketing and its... Read More
It is true that with online business, the entire world... Read More
When your friends need a recommendation for a plumber or... Read More
We live today in an age of inflated money- where... Read More
Some people are addicted to talking.A mere interjection, comment, the... Read More
Two Things (Maybe Three):1) Over the course of this on-line... Read More
By helping others to grow their business you ensure growth... Read More
No, this baby boom will certainly not swamp the Social... Read More
Many internet home business owners are lost when they first... Read More
An internet mlm business is very different from an offline... Read More
If you have long dreamed of getting your piece of... Read More
If there was a way that you could guarantee to... Read More
One thing to consider before you get serious with any... Read More
So...you have joined a Network marketing Company, and you are... Read More
Network marking is the ordinary person's best opportunity to make... Read More
Commandment 8KindnessJust as courtesy is contagious, kindness often begets kindness.... Read More
Would you like to earn money by starting your own... Read More
When most people think about Multi-Level Marketing, they envision slick-talking,... Read More
Just finished check my email. Nothing new, three payment notification... Read More
Do any or all of these statements sound familiar or... Read More
Everyone dreams of building a Profitable MLM Sales Team. Unfortunately... Read More
The first thing any business organization owes itself is self-perpetuation.... Read More
People have been finding ways to make money to make... Read More
There are so many misconceptions flying around out there about... Read More
Network marketing has many aspects, but promotion, persistence, and patience... Read More
Coaching the HostPlan to spend some time with your Host... Read More
We've all seen them before ? businesses that promise great... Read More
It is amazing.Every where I have the honor of speaking,... Read More
In the search for the quickest way to get rich,... Read More
It is often the case when you join a Network... Read More
Here are the good criteria and checkpoints to select network... Read More
Phone skills are very important when you have your own... Read More
When I build my internet mlm business, many of my... Read More
The network marketing industry is undoubtedly one of the best... Read More
There are many ways to build an MLM business, and... Read More
Looking for a MLM home business opportunity to start your... Read More
In the old days we would play in the woods... Read More
The subconscious mind is a very powerful thing and if... Read More
The world of network marketing has many aspects, but promotion,... Read More
Do people that are successful in home based businesses share... Read More
With email filters, blockers, and simply tons of unsolicited email,... Read More
Recent discussions with fellow network marketers have centered on whether... Read More
What do you do to build a SCORCHING HOT MLM... Read More
Money is a magnifier.That is an awesome thought! And so... Read More
There is a Myth, a Lie, a Bogus concept that... Read More
You don't have to have a lot of people to... Read More
In the good old days back in the 80s, MLM... Read More
Network marketing and the internet were made for each other.The... Read More
Network Marketing |